Mastering Risk Management

REPUTATION AND BRAND

Is reputation the same as brand? Emphatically no. A brand is an identity created and controlled by its owner for commercial gain and for sale to consumers. It can be closed down if its reputation is sufficiently damaged, such as in the case of the News of the World (see later case study). By contrast, a reputation cannot be closed down.

There are obvious parallels. Reputation and brand are driven by values and behaviour; both depend on experience. However, with brand, the customer is key, whereas with reputation the customer is a subset of the stakeholders, albeit a significant one.

A strong brand can protect a company against intensifying price competition and help to protect its reputation. But brand alone will not protect ...